The Business Council of Mongolia has established a Business Ethics Working Group to help companies enhance anti-corruption measures and promote responsible business conduct. Corruption costs companies and societies enormously, so both the public and private sectors must work together to implement effective anti-corruption solutions. The Working Group aims to improve governance, support anti-corruption reforms, and strengthen Mongolia's anti-corruption agency through capacity building and collective action. While the government must strengthen laws and enforcement, companies also have a responsibility to continuously improve their own integrity standards and cooperate with the public sector to fight corruption.

1. ANTI CORRUPTION POSITION STATEMENT
OF THE BUSINESS COUNCIL OF MONGOLIA
Corruption, and in particular bribery, are increasingly relevant topics for businesses around the
globe. Based on an estimate by the World Bank, USD 1 trillion is lost to bribes every year. This
number shows the vast size of the problem. Corruption creates costs and risks for companies,
and generates enormous negative impacts for political, economic, and social development.
While corruption is frequently understood to be an exclusive problem of the public sector,
companies often create the supply side to corruption. As the public and the private sectors are
part of the corruption equation, they must also be part of the solution by working together to
implement effective anti-corruption measures.
To this end, the Business Council of Mongolia (BCM) has established the Business Ethics
Working Group (the Working Group) to help members enhance internal controls, promote best
practices and responsible business conduct, advocate for a transparent, and enable a healthier
business environment through capacity-building activities, peer-learning sessions, and collective
action.
To achieve the Working Group’s goals, we believe that Mongolia’s leaders must undertake
genuine effort to improve governance and anti-corruption reforms. Essential internal and
external reforms will create the level playing field and business environment that generates
sustainable growth. The recently passed National Anti-Corruption Strategy offers new reforms
that can prevent corrupt behavior. However, concrete actions and enforcement need to follow
this long-awaited expression of political will to tackle corruption. The group, therefore, will
support government implementation strategies, particularly those related to the private sector.
The Business Council of Mongolia further calls on the government to:
 Create a strong legal framework consistent with international standards, such as the
United Nations Convention Against Corruption (UNCAC), and encourages transparent,
and ethical business practices;
 Enforce laws and policies related to anti-corruption, with a focus on systemic issues;
 Implement anti-corruption and integrity systems within government institutions and
actively cooperating with business to tackle corruption; and
 Strengthen the Independent Authority Against Corruption (IAAC) by ensuring sufficient
funding and securing it from political interference, giving it a stronger and more
independent mandate.
LEADING PARTNER TO STAKEHOLDERS
IN MONGOLIAN BUSINESS
www.bcmongolia.org
Tel: 976-11-317027/70114442
E-mail: info@bcmongolia.org

2. Despite the important role the government must play in fighting corruption, companies must take
responsibility for their actions. More and more national as well as international companies in
Mongolia implement corruption-risk management systems and strive to operate with integrity.
However, the private sector has more to do, and our business leaders must strongly encourage
and materially support others’ commitment to fight corruption. Therefore, the members of the
Business Ethics Working Group commit to:
 Continuous improvement of integrity standards within their own organizations and the
promotion of these standards amongst peers and business partners—this will include
the development of exemplary policies, guidelines, and tools that can be applied by the
business community to improve their integrity standards and practices;
 Active cooperation with the public sector to tackle corruption; and
 Collaboration with international organizations with the focus of combating corruption and
promoting ethical and transparent business practices.
The Business Council of Mongolia
January 9, 2017
Ulaanbaatar